Kenya Electricity Generating Company has reported a 35 per cent surge in net profit for the year ended June 2024, driven by strong revenues from geothermal and hydroelectric power plants.
The power generator’s profit after tax for the period closed at Sh6.8 billion, up from Sh5 billion the previous year, as it continued to lead Kenya’s green energy shift.
During the period, the Nairobi Securities Exchange-listed company realised Sh9.6 billion in operating profit as finance income grew by 147 per cent to Sh4.2 billion, nearly tripling the Sh1.7 billion recorded in 2023.
This sharp increase bolstered the company’s overall profit jump underscoring its strategic financial management amid a volatile economic landscape.
“This impressive growth not only strengthens our financial position but also signals greater returns for shareholders now and long into the future, while enhancing our ability to invest in critical renewable energy projects providing more affordable, reliable electricity for our consumers,” KenGen CEO Peter Njenga said.
This year’s fi nancial results underscore KenGen’s ability to adapt to environmental and market challenges, Njenga affi rmed.
The company reported dispatching 8,384GWh (Gigawatt-hours) of electricity during the year, up from 8,027GWh in 2023, with the increase coming despite volatile weather conditions and inflationary pressures that have affected many businesses in Kenya.
Njenga said the company was able to maintain a stable operating profit of Sh9.6 billion by focusing on cost management and efficiency improvements.KenGen’s power plants, particularly its geothermal and hydroelectric facilities, were critical to meeting the country’s peak electricity demand of 2,149MW during the period under review.
“Despite the harsh global macroeconomic challenges, characterised by high inflation and foreign exchange fluctuations, we were able to instill financial discipline and prudent cost management measures in our operations which has seen us flatten the operational costs,” said Njenga.
KenGen share trading at the NSE
closed at Sh4.13, gaining by 31.1
percent.
